Mobile money use in Kenya double that of commercial banks

More than twice the amount of Kenyans use mobile money services than commercial banks, according to a new study.

The FinAccess National Survey (2013) shows 11.5 million adults use mobile money services in Kenya, compared to 5.4 million using traditional banking services.

“Mobile money has had a dramatic impact on domestic remittances,” the report said, noting the use of mobile phone financial services stood at 62 per cent in 2013, up from 28 per cent in 2009.

Use of commercial banks has, however, also been on the rise, up to 29.5 per cent of Kenyans from 13.5 percent in 2006.

The report shows Nairobi and the central regions top the list, where use of mobile money stands at 84 per cent and 75 per cent respectively.

It also showed around 29 per cent of the adult population now uses mobile money transfer services for international transfers, up from 13 per cent in 2009.

HumanIPO reported last month a report by the African Economic Research Consortium (AERC) showed the proportion of Kenyan adults using mobile money services had increased to 75 per cent, up from around 41 per cent in 2009.

Lemma Senbet, executive director at AERC, said at the time that “despite the strong growth in financial inclusion, formal banking in Kenya remains depressed due to the cost of services and reach-ability”.